Published: November 23 2023
The average salary in Budapest has increased by 14.1% in 2022, according to data from the Hungarian Central Statistical Office (KSH). This is good news not only for employees but also for potential homebuyers, as mortgage rates have started to decrease as well.
Significant wage growth surpassing inflation
Both gross and net average wages have increased by 14.1% according to KSH data. This is particularly positive considering that the annual inflation rate was only 12.2% in the first month of autumn. As a result, real wages have grown by an average of 1.7%. Finally, the purchasing power of our salaries is starting to increase.
Average salary sufficient for a mortgage
Based on the average monthly salary of 371,000 HUF, borrowers could secure a 10-year fixed-rate mortgage with an interest rate of 8.64%. Typically, mortgage repayments cannot exceed 50% of one's income (certain banks may have stricter requirements, but more favorable terms cannot be expected). Therefore, the net average salary is sufficient to cover monthly repayments of up to 185,500 HUF. With a 20-year term, a mortgage of 21.1 million HUF could be repaid with this amount.
Personal loans and interest rates
For personal loans, an average Hungarian salary would be enough to repay 9.9 million HUF over a 7-year term. It is worth noting that interest rates for home loans have started to decrease, thanks in part to the voluntary interest rate ceiling introduced in October. Currently, even with the September average salary, borrowers can obtain loans with an interest rate as low as 6.89%. With this interest rate, one could repay a mortgage of 24.1 million HUF over a 20-year period with an average salary.
CSOK Plus: A new opportunity for families
Next year, the "CSOK Plus" program will be introduced, providing housing support for families at a fixed interest rate of 3%. With a monthly salary of 371,000 HUF, borrowers could potentially secure a supported loan with monthly repayments of up to 33.4 million HUF. It is important to note that there are several eligibility criteria for the CSOK Plus program, and not all details have been released yet. For more information, visit the Bankmonitor CSOK Plus website.
Questions & Answers
What was the average salary in Budapest in September 2022? The average gross salary in Budapest in September 2022 was 557,900 Hungarian forints, which is equivalent to a net salary of 371,000 Hungarian forints.
How much did the average salary increase in Hungary in 2022? The average net salary in Hungary increased by 14.1% in 2022.
Did the increase in salary outpace inflation in Hungary? Yes, the increase in salary finally outpaced inflation in Hungary.
What were the average net and gross salaries in Hungary in September 2022? The average net salary in Hungary in September 2022 was 371,000 Hungarian forints, while the average gross salary was 557,900 Hungarian forints.
How long has it been since salary growth in Hungary exceeded inflation? The last time salary growth in Hungary exceeded inflation was in August 2022.
What is the interest rate for a 10-year fixed-rate mortgage in Hungary? In September 2022, the interest rate for a 10-year fixed-rate mortgage in Hungary was 8.64%.
What is the maximum amount of the monthly mortgage payment based on the average net salary in Hungary? Based on the average net salary of 371,000 Hungarian forints, the maximum monthly mortgage payment would be 185,500 Hungarian forints.
How much mortgage can be taken out based on the average net salary in Hungary with a 20-year repayment period? With a 20-year repayment period, a mortgage of 21.1 million Hungarian forints could be repaid based on the average net salary.
What is the maximum amount of a personal loan that can be repaid based on the average net salary in Hungary with a 7-year repayment period? Based on the average net salary in Hungary, a personal loan of 9.9 million Hungarian forints could be repaid with a 7-year repayment period.
Have mortgage interest rates been decreasing in Hungary? Yes, mortgage interest rates in Hungary have been decreasing since September 2022.
What is CSOK Plusz and what is its interest rate? CSOK Plusz is a program in Hungary that assists families in obtaining housing with a fixed interest rate of 3%.
How much monthly installment of a subsidized loan from CSOK Plusz can be obtained based on an average salary of 371,000 Hungarian forints? Based on an average salary of 371,000 Hungarian forints, a monthly installment of up to 33.4 million Hungarian forints for a subsidized loan can be obtained through CSOK Plusz.
